Uniform Transfer to Minor Account (UTMA) Set Up

Question 1

What is an UTMA?

Answer 1

Uniform Transfer to Minor Account is an account that a donor (parent, grandparent, guardian) is permitted to open for the benefit of a minor. They may act as, or appoint, a custodian of the account. The funds may be used by the custodian for the benefit of the minor at any time, but the minor is not entitled to the use of the funds themselves until they become of age. Once it is initiated the account is irrevocable. When the minor becomes of age the custodian can withdraw the funds and gift them to the minor, but the minor IS NOT a signer on the account and CAN NOT conduct transactions.

Question 2

How many custodians and minor’s are allowed per UTMA accounts?

Answer 2

ONLY 1 minor and 1 custodian per account.

Question 3

In a UTMA account, can the minor conduct transactions?

Answer 3

No, the monies deposited or withdrawn from the account must be done by the custodian.

Question 4

Is an UTMA account Irrevocable or Revocable?

Answer 4

Irrevocable- once the minor has become of age, the account is not reversible.

Question 5

Who is the primary on an UTMA account?

Answer 5

The minor is the primary, however has no signing rights.

Question 6

Do you need to add an alert to UTMA accounts?

Answer 6

Yes- add the alert stating that it’s an UTMA account and the custodian is the only signer.

Question 7

Does the custodian have the authority to sign the SSN/TIN Certification for the minor’s SSN/TIN?

Answer 7

Yes.

Question 8

Before activating the account by uploading, what is required?

Answer 8

• Signed signature cards, disclosures and debit card application.
• Min $100 opening deposit